Great News for the Housing Market !

President Signs Housing Rescue Bill President George W. Bush signed into law a bipartisan housing stimulus bill Wednesday that is expected to bring greater stability to housing markets nationwide. The bill, strongly supported by the NATIONAL ASSOCIATION OF REALTORS®, will help some 400,000 home owners refinance into affordable, government backed loans and offer a temporary first-time home buyer tax credit, which is expected to serve as an attractive incentive to buyers and help reduce high inventories of unsold homes.
The temporary first-time home buyer tax credit would offer $7,500 for the purchase of any home and an be used for purchases between April 9, 2008, and July 1, 2009.
The bill — H.R. 3221, the Housing and Economic Recovery Act of 2008 — also includes reform of Fannie Mae and Freddie Mac, FHA modernization, and permanent increases in conforming and FHA loan limits. "These are all designed to help the housing and mortgage industries and boost the U.S. economy," NAR President Dick Gaylord said in a statement. “NAR has been a leading advocate for many of these changes long before the current housing and economic downturn. We are pleased that the president and Congress worked together to enact meaningful legislation that protects and enables families in this country to continue to strive for and enjoy the dream of homeownership.”Source: NAR, Associated Press (7/30/08)

One More Down for the Count

'Extreme Makeover' House Faces Foreclosure

Three years after a Lake City, Ga, home was featured on "Extreme Makeover," the home is in foreclosure and about to be auctioned.The Harper Family used the renovated property as collateral to get a $450,000 loan. Now they are unable to pay the bills and the property will be auctioned on the steps of the Clayton County Courthouse on Aug. 5.ABC-TV said in a statement that it advises each family to consult a financial planner after they get their new home."Ultimately, financial matters are personal, and we work to respect the privacy of the families," the network said.Source: The Associated Press (07/28/08)

Daily Real Estate News July 28, 2008

Senate Passes Housing Rescue Bill The U.S. Senate on Saturday passed a bill that would stem foreclosures by allowing some 400,000 home owners refinance into affordable, government-backed loans. The bill, strongly supported by the NATIONAL ASSOCIATION OF REALTORS®, passed by a margin of 72-13. The House of Representatives approved the bill on Wednesday in a 272-15 vote. "This bill must get to the president quickly, and we urge him to act immediately to sign it into law," NAR President Dick Gaylord said in a statement last week. NAR says the bill will help bring stability to the housing market and put a dent in the rising rate of foreclosures. The program will be run by the Federal Housing Administration, and will insure up to $300 billion in refinanced 30-year, fixed-rate loans. The mortgages can't be for more than 90 percent of a home's newly appraised value. For mortgages that exceed the value of the home, the lender would have to voluntarily write down the principal to the qualifying level. If the home goes up in value, the borrower must share newly created equity with the FHA.Experts say the success of the program depends on how receptive banks are to writing down a portion of the loan. If passed into law, the program will begin Oct. 1 and end Sept. 30, 2011. Borrowers won't be able to qualify if they have intentionally defaulted on their loans or if they had a debt-to-income ratio of less than 31 percent as of March 1.Source: Associated Press, The Wall Street Journal, NAR

Ten Cities With Highest Inflation

Forbes magazine looked at inflation in the 40 largest metro areas in the U.S. to see where prices were rising fastest.The numbers were supplied by the Bureau of Labor Statistics and Moody’s Economy.com and reflected changes between January and June 2008.Resetting mortgages, rising food prices and runaway fuel costs are the biggest sources of the pain.Here are the top 10 cities with the highest annual inflation rates.
Seattle, 5.82 percent
Dallas, 5.82 percent
Washington, D.C., 5.74 percent
Miami, 5.71 percent
Portland, Ore., 5.68 percent
San Jose, Calif., 5.61 percent
Milwaukee, Wisc., 5.61 percent
Tampa, 5.60 percent
Phoenix, 5.44 percent
Los Angeles, 5.41 percentSource: Forbes, Matt Woolsey (07/18/2008)

Top 10 Cities to Buy a Home

Top 10 Cities to Buy a Home

Financially, at least, the best places to buy houses are those where buying costs less than renting, tax incentives are attractive, and there’s an opportunity to build equity.Forbes magazine surveyed the 40 largest metropolitan area housing metrics looking for cities where home prices have appreciated over the last two years. It also measured vacancy rates. And it gave extra points to cities where rents are significantly higher than a buyer would pay for the same home.Texas dominated the magazine’s list because of its healthy job market and growing tax revenues.Here are the 10 cities that topped Forbes’ best-places-to-buy list:
Houston
Austin, Texas
St. Louis
Philadelphia
San Antonio, Texas
Dallas
Charlotte, N.C.
San Francisco
Jacksonville, Fla.
Atlanta

Good news, perhaps ?

Foreclosures declined 3 percent from May to June but were still up 50 percent compared with June of 2007, according to RealtyTrac Inc., which monitors the foreclosure process.One in every 501 U.S. households received a foreclosure filing last month.Foreclosure filings increased from a year earlier in all but 11 states. Nevada, California, Arizona, Florida and Michigan continued to have the highest foreclosure rates.In today's market, about 50 to 60 percent of borrowers nationally who receive foreclosure filings are now likely to lose their homes, said Rick Sharga, RealtyTrac's vice president of marketing, compared with a typical rate of about 40 percent
.Source: The Associated Press, Alan Zibel (07/10/2007)

Sales Update from NAR !

Daily Real Estate News July 8, 2008
Sales to Vary in Narrow Band, Then Rise Modest
near-term movement is expected in existing-home sales, with a recovery in sales seen during the second half of the year, according to the latest forecast by NAR. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in May, fell 4.7 percent to 84.7 from an upwardly revised reading of 88.9 in April, and remains 14.0 percent below May 2007 when it stood at 98.5. Lawrence Yun, NAR chief economist, said some pullback after a sharp increase in the previous month was expected. “The overall decline in contract signings suggests we are not out of the woods by any means. The housing stimulus bill that is still being considered in the Senate is critical to assure a healthy recovery in the housing market, jobs and the economy,” he said.The PHSI in the West slipped 1.3 percent to 97.5 in May but is 2.0 percent higher than May 2007. In the Northeast, the index declined 2.9 percent to 77.0 in May and is 16.4 percent below a year ago. The index in the Midwest fell 6.0 percent to 78.6 and is 13.8 percent below May 2007. In the South, the index dropped 7.1 percent in May to 84.5 and is 22.1 percent below a year ago.Yun said location has never mattered more than in the current market. “Some markets have seen a doubling in home sales from a year ago, while others are seeing contract signings cut in half. Price conditions vary tremendously, even within a locality, depending upon a neighborhood’s exposure to subprime loans.”Double-digit pending sales gains in May from a year ago were noted in Colorado Springs, Colo.; Sacramento, Calif.; and Spartanburg, S.C.NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said the current market offers immediate benefits and long-term value for many buyers. “Home buyers are getting a great deal right now,” he said. “Although inflationary expectations appear to be under control for the time being, sharper consumer price gains could lead to notably higher mortgage interest rates in 2009.” Based on current indicators, the 30-year fixed-rate mortgage is forecast to rise gradually to 6.5 percent by the end of this year, and then hold at that level for most of 2009. NAR’s housing affordability index is improving this year and is likely to rise 15 percentage points to 127.0 for all of 2008. Existing-home sales are expected to grow from an annual pace of 5.01 million in the second quarter to 5.75 million in the fourth quarter. For all of 2008, existing-home sales should total 5.31 million, and then increase 5.0 percent next year to 5.58 million.“The speed at which home prices has declined in a few select markets is unprecedented, but the large price declines in those areas have enticed bargain hunters back into the market,” Yun said. “Interestingly, there have been reports of multiple bidding after the large price cuts, so it is possible that most of the price declines have already occurred in those markets.”The aggregate median existing-home price is projected to fall 6.2 percent this year to $205,300, and then rise by 4.3 percent in 2009 to $214,100.New-home sales are likely to fall 32.3 percent to 525,000 in 2008 and decline another 3.4 percent next year to 507,000. “In light of high inventory conditions, rising commodity prices and construction costs will curtail new home construction deep into 2009,” Yun said. Housing starts, including multifamily units, will probably fall 28.7 percent to 966,000 this year, and then drop another 9.0 percent in 2009 to 879,000. The median new-home price is expected to decline 3.2 percent to $239,300 this year, and then rise 5.3 percent in 2009 to $251,900.Growth in the U.S. gross domestic product (GDP) is seen at 1.6 percent in 2008 and 1.4 percent next year. The unemployment rate should average 5.4 percent this year and 5.8 percent in 2009. Inflation, as measured by the Consumer Price Index, is forecast at 3.7 percent this year and 2.4 percent in 2009. Inflation-adjusted disposable personal income is projected to grow 1.5 percent in both 2008 and 2009.Source: NAR

Speedy Sales Still Possible But The Main Engine Is Price !

Selling a Home in a Hurry Still Possible

While most homes are staying parked on the for-sale market for a longer time these days, occasionally a residential property turns over in 24 to 48 hours. Such transactions elevate the mood of the professional real estate community and its clients, while offering a snapshot of ideal conditions that contributed to the near-immediate sale and that could possibly help move other listings faster, as well. According to real estate professionals, the key components of a quick turnaround on a home for sale include realistic pricing, a polished and well-staged appearance, the right location, and the interest of a prospective buyer who is compatible with the property. "It's definitely a down market, but the special houses sell fast," says developer Kostas Macos who waited patiently for the owners of a Rittenhouse Square home in Philadelphia to trade up, then seized the opportunity to buy it for himself. "There will always be properties [that] sell, even in a depressed market," observes Prudential Fox & Roach's Mary Genovese Colvin. "In most situations, a 24-to-48-hour sale is a special property. But many times, people in an area have an eye on a particular house."

Bargain Hunters Having a Field Day

Daily Real Estate News July 3, 2008
Bargain Hunters Have Field Day With REOs
Banks that are flooded with foreclosures are dumping them onto the market and bargain hunters are having a field day, and some observers are saying prices won’t go any lower.Mark Partipilo, a Las Vegas real estate investor, isn’t alone in concluding: "In this market, there are so many REOs that the banks are getting their clocks cleaned. This might not be the bottom, but waiting six months might be too late."Banks might be reluctant to sell cheap, but most are agreeing. "Banks that are not in Disneyland recognize that these sales are the reality today," says Denny Grimes, a practitioner and owner of Danny Grimes Co. in Ft. Myers, Florida."Markets where a large share of homes are heavily discounted because of REO sales, they may be seeing a bottom," says Cynthia Kroll, an economist and real estate market scholar at the University of California, Berkeley.Source: Reuters News, Patrick Rucker (07/02/2008)

Moving to Number One

I just wanted to give my fellow bloggers, clients and friends an update here. I am now with Dickson Realty on Vista Blvd in Sparks. Dickson realty is by far, the dominant real estate company in Northern Nevada. Nearly 25% of all sales, both buying and selling go through a Dickson office. Dickson Realty has 11 offices and nearly 400 agents (and growing) I can network with to help you find the right home, or sell your current property. This is a very positive move for me, as I can now provide the highest level of services with unparalleled support from company owners, management and staff. Feel free to call me anytime with any of your real estate needs or wants!

Jeff Stake, Realtor, ABR

Dickson Realty

4870 Vista Blvd

Sparks, Nevada

(775)233.2689